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IRS announces interest rates to remain unchanged for next calendar quarter

IRSThe IRS said on Thursday that interest rates will remain unchanged for the calendar quarter beginning Oct. 1.

Overpayments will carry a rate of three percent, unless the overpayment involves a corporation, in which case the rate is two percent. Underpayments carry an interest rate of three percent, and large corporate underpayments will carry a five percent rate. The portion of a corporate overpayment exceeding $10,000 will carry a rate of 0.5 percent.

Under the Internal Revenue Code, interest rates are determined on a quarterly basis. Taxpayers other than corporations see overpayment and underpayment rates equivalent to the federal short-term rate, plus three percentage points.

For a corporation, the underpayment rate is the federal short-term rate plus three percentage points, and the overpayment rate is the short-term rate plus two percentage points.

For large corporate underpayments, the rate is also the federal short-term rate, plus five percentage points. The rate on the portion of a corporate overpayment of more than $10,000 for a taxable period is the federal short-term rate plus 0.5 percent.

Interest rates are computed from the federal short-term rate set in July.

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